Trade insiders said Iranian buyers have stopped giving fresh orders as they are keeping a close watch on the developments in the country where the situation is tense with protests spreading and the government intensifying crackdown on protesters.
The development comes at a time when exports to Iran had picked up after two dull years first due to the Covid-19 pandemic and then because of a payment crisis caused by US sanctions on Iran.
“Everything was going fine. But the sudden tension in Iran has slowed down exports to the West Asian nation,” said Mohit Agarwal, director at Asian Tea & Exports, a leading tea producer and exporter based in Kolkata. “In the last ten days, we are seeing that movement (of commodities) has slowed. The shops are shut and buyer are taking cautious steps. However, we are hopeful that this will not continue for long and exports to Iran will increase,” he said.
Vinod Kaul, executive director of All India Rice Exporters Association, said, “We are yet to see a significant impact of the current geopolitical tension in Iran. However, going ahead if this situation (in Iran) continues, it may impact exports.”
Iran had imported 53 million kg of orthodox teas from India in 2019, before Covid-19 broke out. In 2020 and 2021, however, exports to Iran plunged to 29 million kg and 21 million kg, respectively due to the pandemic and payment crisis.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
